Mammoth Energy Services, Inc. Announces Sale of Infrastructure Subsidiaries

Core Viewpoint - Mammoth Energy Services, Inc. has completed a significant transaction by selling its subsidiaries for $108.7 million, enhancing its cash position to approximately $160 million and expanding its investment opportunities [1][2][4] Financial Transaction Summary - The sale of 5 Star Electric, Higher Power Electrical, and Python Equipment to Peak Utility Services Group resulted in cash proceeds of $98.3 million, with $10.4 million held in escrow for adjustments and liabilities [1] - The company has amended its revolving credit facility to allow for stock repurchases up to $50 million or 10 million shares, provided unrestricted cash exceeds $50 million post-repurchase [3] Strategic Growth and Future Plans - The transaction is expected to unlock significant value for Mammoth, which has generated over $90 million in annual revenue from the sold subsidiaries in the past three years [2] - The company is actively exploring capital deployment opportunities for accretive returns, leveraging its enhanced liquidity position [2][4] Aircraft Acquisition - Mammoth has purchased eight small passenger aircraft for approximately $11.5 million, which are under long-term leases and expected to be immediately accretive to financial results [1][4] Leadership Transition - Phil Lancaster will transition to Peak as CEO after the sale, while Mammoth initiates a search for a new CEO [3]